BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Switching costs are the costs that a consumer incurs as a result of changing brands, suppliers, or products. Although most prevalent switching costs are monetary in nature, there are also psychological, effort-based, and time-based switching costs.

Detailed explanation-2: -For example, consider an individual who currently pays $50 per month for her phone bill. The individual notices that another service provider is providing the same phone plan for a monthly cost of $45. In the example above, the individual will save $5 if she switches phone plans.

Detailed explanation-3: -If the market is competitive and switching costs exist, only satisfied customers repurchase products and services because of competition, which may result in small number of false loyal customers. This seems to be the case in the cell phone market.

Detailed explanation-4: -Switching costs, also known as switching barriers, are the costs associated with a customer switching from one supplier to another.

Detailed explanation-5: -Switching costs are expenses organizations or customers experience if they switch to new supplier, brand or product. Higher switching costs can provide disincentives for customers to switch providers and encourage them to remain loyal to a brand.